An attorney representing the Clarion Hotel and members of the community voiced concerns regarding the application submitted by ADK Hospitality, LLC, to Genesee County Economic Development Center for incentives to build a hotel at Batavia Downs.
A public hearing was held Monday night by the GCEDC to gain input from the community on the application they received from ADK, a private developer seeking to build a hotel at Batavia Downs, requesting approximately $630,000 in incentives.
Vivek Thiagarajan, attorney representing Clarion owner Chat Patel, argued that when his client looked into applying for GCEDC incentives to build the Palm Island Indoor Waterpark in 2012 he was told the project would be denied funding because it was not considered a tourist destination. Thiagarajan argued that ADK's hotel is not a tourist destination and Batavia Downs should not receive tax incentives either.
"There is no tourist destination about the hotel itself," Thiagarajan said. "Maybe the name makes it look like it's affiliated with Batavia Downs but the hotel is merely just like any other hotel. As a result, the public shouldn't be forced to fund something that only benefits the private owners of that hotel."
Thiagarajan also argued that the purchase price of $600,000 is less than the $630,000 in incentives the project would receive from the GCEDC.
In addition to Thiagarajan's opposition, John Sackett, a past county legislator, questioned whether the hotel would create full-time jobs and believed the hotel should be built without incentives.
A representative from the Northeast Regional Council of Carpenters expressed concern over whether Batavia Downs and ADK would use union construction workers to build the hotel. The union agreed it would support the hotel project if union construction workers were used.
A variety of local businesses wrote letters in support of the proposal. The businesses included Sport of Kings Restaurant, Harness Horse Breeders of New York State, Sloat Tire Shop, Genesee Feeds, Nothnagle Realtors, Genesee County Chamber of Commerce, WNY Harness Horsemen's Association and U.S. Foods. The businesses stated that Batavia Downs is a primary asset for attracting tourism and the addition of the hotel would bring more people and business to the community.
Anthony Baynes, managing member of ADK, provided details on the hotel project and the economic impact it would have on Genesee County. In the presentation, Baynes stated the $5.5-million hotel will be a four-story structure with 84 rooms. Itl will also be connected to Batavia Downs Gaming and complement the design elements of the new gaming entrance. There will be no restaurant or bar in the hotel.
"The hotel will positively impact Batavia Downs and local tourism on a permanent basis," Baynes said. "It will generate incremental gaming, banquet, food and beverage revenue at Batavia Downs, which will result in increases in tax collection, jobs preserved and additional jobs created."
According to Michael Nolan, vice president of Western Regional Off-Track Betting, the corporation that owns Batavia Downs, the hotel will help the gaming industry expand and allow them to compete with other casinos that are building hotels.
The hotel will result in the creation of 23 jobs. There also will be more job growth due to the number of wedding and conventions Batavia Downs will host because of the hotel.
"We think our banquet facility is going to multiple 10 times due to the hotel," Nolan said. "It's well within reason that there will be 50 jobs coming with the addition of the hotel."
According to statistics provided by Hotel & Leisure Advisors, a national hospitality consultant firm, the total impact of the new gaming revenue, new food and beverage sale and increased banquet business will be $2.6 million for the first year of operation. In the first 10 years of operation, the impact will be $31 million.
The GCEDC Board of Directors is having a special public meeting to consider a final resolution for the project. The meeting will be held at 11:15 a.m. on Thursday at the Innovation Zone Conference Room at MedTech Centre.
This Hotel will be the best
This Hotel will be the best thing that ever happened to Alex's Restaurant. I would agree that the hotel will probably have more local folks and Horsemen than tourists. Batavia Downs will be attached, but will not run the Hotel. So we will be getting another motel in a town loaded with motels now. Minimal impact on gaming revenues. "No harm, no foul". But $630,000 in incentives, I dun no???
Probably send the guests to
Probably send the guests to the Clarion for breakfast..lol
Mr. Vivek Thiagarajan is
Mr. Vivek Thiagarajan is absolutely correct. The taxpayers of Genesee County should not participate in this venture. Batavia Downs should be privately owned and the GCEDC should be a memory. However, I fear the fix is in, has already been promised, its going to happen and it doesn't matter what most of us want.
Someway, somehow the misconception has grown that representatives of the people in government such as the county legislature, are there to make the best decisions possible for the people. I reject that completely.
Elected representatives are just that, they are there to represent the people and protect each and everyone's individual rights. They are supposed to work out viable solutions and options for managing government and let the people decide what they want, and how much they are willing to pay for it. Then that vision is to be handed to the employees, such as the manager to make happen. There should be no place for enabling private enterprise, that is supposed to take place totally outside of government. It even says so in the NYS Constitution which has been routinely ignored for a long time. Precedence does not make it right.
Genesee County at least in the case of the GCEDC is totally backwards, the GCEDC CEO decides what he wants to do, tells the legislature and they just do it without the consent of the governed. Until the people recognize this fundamental failure of their elected representatives to correct this situation, some businesses will get tax breaks and others will not, the population and median income of Genesee County will continue to decline along with home ownership, long time family businesses will keep closing while a select few profit greatly.
Dave. While I agree with your
Dave. While I agree with your statement that, "Elected representatives are just that, they are there to represent the people and protect each and everyone's individual rights. They are supposed to work out viable solutions and options for managing government and let the people decide what they want, and how much they are willing to pay for it", let's face it.
Once in office, our 'officials' are under NO obligation to do what their constituents want. Oh sure, you can TRY to vote them out in future elections, but, if/until that happens, they can pretty much do what the Hell they decide is best, and you're stuck with it.
Shouldn't be that way, but, it is!
Good point Fred... I wonder
Good point Fred... I wonder why Alex's wasn't one of the local businesses sending a letter of support? I'm sure they would be at the top of the beneficiaries of this "motel right across the street, without a restaurant or bar"... ? And otherwise the only likely local business/beneficiary would be Sloat's Tire Shop????????
And of course the new motel will create 23 new jobs. BUT, are these jobs full-time or part-time, minimum wage or living wage, include other reasonable benefits [like health insurance, pension, sick time]? Or the 23 people lucky enough to get a job here [in this new motel subsidized by the taxpayers of Genesee County] can rely on Obamacare, Medicaid, Social Security, Medicare, etc. for these necessities [more taxpayer subsidized compensation], because the corporate execs running the venture need enough money to guarantee their six figure incomes?!!!
I don't know the numbers, but I cannot begin to believe that there are not sufficient motel rooms within almost walking distance of Batavia Downs, that are NEVER totally sold out [or even close]. Why can't "tourist" stay at these lodgings? Or is this new motel going to offer substantially lower rates, because the foolish taxpayers via GCEDC are subsidizing their cost. Besides BD has a couple shuttle vehicles... do they/can't they transport folks from the motels down the street... or are they just for carting lazy folks from their parking space to the front door?
I support Clarion's opposition... and I oppose GCEDC from using taxpayer money to fund this or any private ventures! This is NOT free market capitalism!!!
When are the resident taxpayers of Genesee County going to wake up and say STOP GIVING MY MONEY TO OTHER BUSINESSES TO GET RICH?!!!
Dave Olsen's comment above is dead-on. Everyone needs to read it carefully, again.
Instead of Genesee County
Instead of Genesee County taxpayers rejoicing over a significant chunk of tax exempt property being returned to private ownership we are about to be penalized for having paid for the infrastructure, law enforcement, fire protection, etc... that will benefit the new hotel ownership while they sit grinning in their cushy Buffalo offices counting their profits (aka rejoicing in wealth extraction from Genesee County).
Make no mistake about it, this hotel is being built with or without tax abatement. The project has been in the blueprints for Batavia Downs for several years nearly exactly as it is playing out - an attached building on the north side of the gaming facility. Tax abatement or not, the hotel owners are going to make money and they want to start that cash flow as soon as possible.
So why even consider tax abatement for a project that is on the fast track to completion? Well, the GCEDC needs to take credit for job creation so the myth of success can perpetuate. We all know how this is going to play out: the GCEDC is going to claim the tax abatement is necessary to complete a project that delivers X full-time equivalent jobs. The tax abatement comes largely at the expense of the struggling property tax paying citizens who financed every single thing the hotel needs to succeed. Roads, water, sewage, etc... all paid by everyone other than the Buffalo based company who is building here to make money. The jobs created are inconsequential - they will not move the needle. There's not even a guarantee the jobs will be filled by Genesee County residents, yet we are footing the bill. Meanwhile the GCEDC is going to claim the tax abatement is a fabulous trade for all the wonderful things that the hotel will add to the community.
40+ years of this nonsense and we have no tangible benefit. We do have a declining population, more abandoned property, more government owned and tax exempt property, and a higher tax burden on the citizens left behind. The process doesn't work. Games rarely do.
So why not just say no? Really, just stop it. The hotel will be built, the same set of part-time jobs will be created, the hotel owners will make money and can write off their tax expenses, and the people of Genesee County will actually not have to lose hundreds of thousands of dollars in property tax revenue that was taken away from us years ago when the government decided it was best for them to run a racetrack and gaming operations. Because we all know government does what's best for us.
I say bravo to the Buffalo firm who wants to build a hotel and make money. Now let's just level the playing field and have them share the same community burden we all share. Maybe if we stopped the abatement game we'd actually be able to lower taxes and make the community even more attractive for investment.
Finally, since our wise and insightful state leadership insists the tax abatement process is a wonderful thing, let's simplify the process and abate the 4% NYS sales tax for every single project that generates a new job, full-time or otherwise. Create a job and get the same break, at Albany's expense. Otherwise, let's focus on lowering the cost of living here and doing business here for everyone and make this the premier destination for business in NYS. Best yet, everyone will be treated equally with a significantly simplified business environment. Maybe then we would all rejoice.
The Mafia runs Batavia Downs.
The Mafia runs Batavia Downs. Give them the money if you like your knees.